SHOULD BANKS BE FINANCING FARM REAL ESTATE NOW? IT DEPENDS

[...]we are urging community bankers to hedge their exposure to farmland lending risk. Farmer Mac is a government sponsored secondary market for agricultural real estate loans that was created after the last great crash in the farm real estate market. Banks that have experience with the FSA guarante...

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Bibliographic Details
Published inBankBeat Vol. 206; no. 10; pp. 20 - 21
Main Authors Blanchfield, John, Malcolm, Heather
Format Trade Publication Article
LanguageEnglish
Published Minneapolis NFR Communications Inc 01.10.2021
Subjects
Agricultural banking
Agricultural lending
Agriculture
Banks
Credit risk
Farmers
Farms
Interest rates
Loans
Real estate financing
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Summary:[...]we are urging community bankers to hedge their exposure to farmland lending risk. Farmer Mac is a government sponsored secondary market for agricultural real estate loans that was created after the last great crash in the farm real estate market. Banks that have experience with the FSA guaranteed loan programs have the option of applying for Preferred Lender status which speeds up loan processing time and gives the bank more control over how the loan is serviced.